overnight repo

Also found in: Dictionary.

Overnight repo

A repurchase agreement with a term of one day.

Overnight Repo

A practice in which a bank or other financial institution buys securities with the proviso that the seller repurchase the same securities the following day. Financial institutions do this in order to raise short-term capital. See also: Overnight loan.

overnight repo

A repurchase agreement in which securities are sold provided that they will be repurchased on the following day. Financial institutions use overnight repos as a means of raising short-term money for financing inventories.
References in periodicals archive ?
Under this setup, the overnight market rate (represented by the BIST overnight repo interest rate) can exhibit larger fluctuations inside the corridor and can move far away from the CBRT average funding rate (Figure 1).
The foremost reason behind this change in SBP's operational framework is to avoid excessive volatility in the money market overnight repo rate as this may create disconnect between short and long-term interest rates in the economy.
9 billion of overnight repo backed by Treasury or agency securities with counterparties other than the Fed for rates between 0 and 3 basis points.
The RBI currently sets monetary policy through rates for its overnight repo and reverse repo operations.
Combine the overnight repo market with the collateralized portion of the derivatives markets and we have a financial market bigger than the FDIC-insured banking system.
At the overnight repo auction the limit of 290 bln rubles remained untaken for the first time after many days
If a Tobin tax induced financial institutions to finance themselves with more longer-term debt and less overnight repo, it could play a significant stabilizing role.
That would bring the shadow banking system back within the regulated system, extending deposit insurance to overnight repo and money market mutual funds.
The UAE central bank trimmed the overnight repo rate by 15 basis points to 4.
25 announced another 25 basis points increase in the overnight repo rate to 7.
Second, the rate pressure should be greater in overnight repo rates than overnight LIBOR because of the timing of the two markets: The brokered repo market is active during the afternoon in the United States, while the London LIBOR-based Eurocurrency market is closed.
The article then examines the difference between general and specific collateral, defines the repo spread and dividend, presents a framework for determining the equilibrium repo spread, and describes the average pattern of overnight repo spreads over the auction cycle.